The device has improved audio and 360 degree head tracking.

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Oculus VR announced a new prototype for its virtual reality headset at the Oculus Connect conference in Los Angeles on Saturday.

Some new features on the updated headset, called Crescent Bay, include improved optics, 360 degree head tracking (thanks to LED on the back of the headstrap), higher resolution, and a higher refresh rate. The headset is also lighter than the previous Oculus prototype. New built-in headphones, along with software from partner RealSpace3D, promise a virtual surround sound audio component to the Rift (though users will still be able to use their own headphones, if they wish).

While Oculus has yet to go into details on the tech specs of the new prototype, CEO Brendan Iribe said Crescent Bay's jump in performance over the latest Rift development kit is similar to the jump from last year's original DK1 dev kit to the new DK2. While this isn't the long-desired consumer version of the Rift headset, Iribe said it is closer than ever to being a consumer-ready product.

Facebook purchased the virtual reality company earlier this year for $2 billion, although the company hasn't created a consumer version of the virtual reality headset yet. Oculus Connect is the company's first developer conference. Ars' Senior Gaming Editor Kyle Orland is at the conference and will have a hands-on post later today.